Morgan Stanley plans contingent income autocallables linked to indexes

By Angela McDaniels

Tacoma, Wash., Dec. 1 – Morgan Stanley Finance LLC plans to price contingent income autocallable securities due Dec. 20, 2022 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Tokyo Stock Price index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Each quarter, the notes will pay a contingent coupon equal to 9.1% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.

Beginning June 15, 2018, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.

The payout at maturity will be par plus the final coupon, if any, unless the final level of any index is less than its downside threshold level, 70% of its initial level, in which case investors will be fully exposed to the decline of the worst-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will price Dec. 15.

The Cusip number is 61768CVG9.

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